Texas 2017 - 85th 1st C.S.

Texas House Bill HB85 Compare Versions

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11 85S10392 JSC-D
22 By: Lucio III H.B. No. 85
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to authorizing the possession, use, cultivation,
88 distribution, transportation, and delivery of medical cannabis for
99 medical use by patients with certain debilitating medical
1010 conditions and the licensing of dispensing organizations and
1111 cannabis testing facilities; authorizing fees.
1212 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1313 SECTION 1. Section 481.062(a), Health and Safety Code, is
1414 amended to read as follows:
1515 (a) The following persons may possess a controlled
1616 substance under this chapter without registering with the Federal
1717 Drug Enforcement Administration:
1818 (1) an agent or employee of a manufacturer,
1919 distributor, analyzer, or dispenser of the controlled substance who
2020 is registered with the Federal Drug Enforcement Administration and
2121 acting in the usual course of business or employment;
2222 (2) a common or contract carrier, a warehouseman, or
2323 an employee of a carrier or warehouseman whose possession of the
2424 controlled substance is in the usual course of business or
2525 employment;
2626 (3) an ultimate user or a person in possession of the
2727 controlled substance under a lawful order of a practitioner or in
2828 lawful possession of the controlled substance if it is listed in
2929 Schedule V;
3030 (4) an officer or employee of this state, another
3131 state, a political subdivision of this state or another state, or
3232 the United States who is lawfully engaged in the enforcement of a
3333 law relating to a controlled substance or drug or to a customs law
3434 and authorized to possess the controlled substance in the discharge
3535 of the person's official duties;
3636 (5) if the substance is tetrahydrocannabinol or one of
3737 its derivatives:
3838 (A) a Department of State Health Services
3939 official, a medical school researcher, or a research program
4040 participant possessing the substance as authorized under
4141 Subchapter G; or
4242 (B) a practitioner or an ultimate user possessing
4343 the substance as a participant in a federally approved therapeutic
4444 research program that the commissioner has reviewed and found, in
4545 writing, to contain a medically responsible research protocol; [or]
4646 (6) a dispensing organization licensed under Chapter
4747 487 that possesses low-THC cannabis; or
4848 (7) a dispensing organization or cannabis testing
4949 facility licensed under Chapter 488 that possesses medical
5050 cannabis.
5151 SECTION 2. Sections 481.111(e) and (f), Health and Safety
5252 Code, are amended to read as follows:
5353 (e) Sections 481.120, 481.121, 481.122, and 481.125 do not
5454 apply to a person who engages in the acquisition, possession,
5555 production, cultivation, delivery, or disposal of a raw material
5656 used in or by-product created by the production or cultivation of
5757 low-THC cannabis or medical cannabis if the person:
5858 (1) for an offense involving possession only of
5959 marihuana or drug paraphernalia, is a patient for whom low-THC
6060 cannabis is prescribed under Chapter 169, Occupations Code, or the
6161 patient's legal guardian, and the person possesses low-THC cannabis
6262 obtained under a valid prescription from a dispensing organization;
6363 [or]
6464 (2) is a director, manager, or employee of a low-THC
6565 cannabis dispensing organization and the person, solely in
6666 performing the person's regular duties at the organization,
6767 acquires, possesses, produces, cultivates, dispenses, or disposes
6868 of:
6969 (A) in reasonable quantities, any low-THC
7070 cannabis or raw materials used in or by-products created by the
7171 production or cultivation of low-THC cannabis; or
7272 (B) any drug paraphernalia used in the
7373 acquisition, possession, production, cultivation, delivery, or
7474 disposal of low-THC cannabis;
7575 (3) for an offense involving possession only of
7676 marihuana or drug paraphernalia, is a patient for whom medical use
7777 is recommended under Chapter 169A, Occupations Code, and the person
7878 possesses no more than the allowable amount of medical cannabis, as
7979 determined under Section 488.002; or
8080 (4) is a director, manager, or employee of a medical
8181 cannabis dispensing organization or cannabis testing facility and
8282 the person, solely in performing the person's regular duties at the
8383 organization or facility, acquires, possesses, produces,
8484 cultivates, dispenses, or disposes of:
8585 (A) in reasonable quantities, any medical
8686 cannabis or raw materials used in or by-products created by the
8787 production or cultivation of medical cannabis; or
8888 (B) any drug paraphernalia used in the
8989 acquisition, possession, production, cultivation, delivery, or
9090 disposal of medical cannabis.
9191 (f) For purposes of Subsection (e):
9292 (1) "Cannabis testing facility" ["Dispensing
9393 organization"] has the meaning assigned by Section 488.001
9494 [487.001].
9595 (2) "Low-THC cannabis" has the meaning assigned by
9696 Section 169.001, Occupations Code.
9797 (3) "Low-THC cannabis dispensing organization" means
9898 a dispensing organization as defined by Section 487.001.
9999 (4) "Medical cannabis" and "medical use" have the
100100 meanings assigned by Section 169A.001, Occupations Code.
101101 (5) "Medical cannabis dispensing organization" means
102102 a dispensing organization as defined by Section 488.001.
103103 SECTION 3. Subtitle C, Title 6, Health and Safety Code, is
104104 amended by adding Chapter 488 to read as follows:
105105 CHAPTER 488. USE OF CANNABIS FOR MEDICAL PURPOSES
106106 SUBCHAPTER A. GENERAL PROVISIONS
107107 Sec. 488.001. DEFINITIONS. In this chapter:
108108 (1) "Cannabis testing facility" means an independent
109109 entity licensed by the department under this chapter to analyze the
110110 safety and potency of medical cannabis.
111111 (2) "Debilitating medical condition," "medical
112112 cannabis," and "medical use" have the meanings assigned by Section
113113 169A.001, Occupations Code.
114114 (3) "Department" means the Department of Public
115115 Safety.
116116 (4) "Director" means the public safety director of the
117117 department.
118118 (5) "Dispensing organization" means an organization
119119 licensed by the department to cultivate, process, and dispense
120120 medical cannabis to a patient for whom medical use is recommended
121121 under Chapter 169A, Occupations Code.
122122 Sec. 488.002. ALLOWABLE AMOUNT OF MEDICAL CANNABIS. (a)
123123 The allowable amount of medical cannabis for a person for whom
124124 medical use is recommended under Chapter 169, Occupations Code, is:
125125 (1) not more than 2.5 ounces of medical cannabis;
126126 (2) if applicable, a greater amount specified in
127127 accordance with department rules by a recommending physician under
128128 Chapter 169A, Occupations Code, and included with the patient's
129129 registration on the medical use registry established under Section
130130 488.054; or
131131 (3) an amount of oils or products infused with medical
132132 cannabis such that the quantity of tetrahydrocannabinols and
133133 cannabidiol in the oil or product does not exceed the quantity of
134134 those substances contained in the amount of medical cannabis under
135135 Subdivision (1) or (2), as applicable.
136136 (b) Oils and products infused with medical cannabis must be
137137 labeled in accordance with department rules to indicate the
138138 quantity of tetrahydrocannabinols and cannabidiol contained in the
139139 oil or product for purposes of determining compliance with this
140140 section.
141141 SUBCHAPTER B. DUTIES OF DEPARTMENT
142142 Sec. 488.051. DUTIES OF DEPARTMENT. The department shall
143143 administer this chapter.
144144 Sec. 488.052. RULES. (a) The director shall adopt any
145145 rules necessary for the administration and enforcement of this
146146 chapter.
147147 (b) The director shall adopt rules imposing fees under this
148148 chapter in amounts sufficient to cover the cost of administering
149149 this chapter.
150150 (c) The director shall adopt rules in accordance with
151151 Section 488.002 governing the allowable amount of medical cannabis
152152 a physician may recommend for a patient for whom medical use is
153153 recommended under Chapter 169A, Occupations Code.
154154 (d) The director by rule shall adopt labeling requirements
155155 for medical cannabis. In adopting labeling requirements, the
156156 director shall ensure each oil and product infused with medical
157157 cannabis is labeled with the quantity of tetrahydrocannabinols and
158158 cannabidiol contained in the oil or product.
159159 (e) The director shall adopt rules for analyzing the safety
160160 and potency of any medical cannabis made available through a
161161 dispensary.
162162 (f) The director shall adopt rules requiring a dispensing
163163 organization to have an adequate supply of medical cannabis to
164164 compensate for any shortfall by another dispensing organization.
165165 Sec. 488.053. LICENSING OF DISPENSING ORGANIZATIONS AND
166166 CANNABIS TESTING FACILITIES; REGISTRATION OF CERTAIN ASSOCIATED
167167 INDIVIDUALS. (a) The department shall:
168168 (1) issue or renew a license under Subchapter C to
169169 operate as:
170170 (A) a dispensing organization to each applicant
171171 who satisfies the requirements established under this chapter for
172172 licensure as a dispensing organization; and
173173 (B) a cannabis testing facility to each applicant
174174 who satisfies the requirements established under this chapter for
175175 licensure as a cannabis testing facility; and
176176 (2) register directors, managers, and employees under
177177 Subchapter D of each:
178178 (A) dispensing organization; and
179179 (B) cannabis testing facility.
180180 (b) The department shall enforce compliance of licensees
181181 and registrants and shall adopt procedures for suspending or
182182 revoking a license or registration issued under this chapter and
183183 for renewing a license or registration issued under this chapter.
184184 Sec. 488.054. MEDICAL USE REGISTRY. (a) The department
185185 shall establish and maintain a secure online medical use registry
186186 that contains:
187187 (1) the name of each physician who registers as the
188188 physician recommending medical use for a patient under Section
189189 169A.003, Occupations Code, and the name and date of birth of the
190190 patient; and
191191 (2) if applicable, the allowable amount of cannabis
192192 specified by a recommending physician for the patient under Chapter
193193 169A, Occupations Code.
194194 (b) The department shall ensure the registry:
195195 (1) is designed to prevent more than one physician
196196 from registering as the physician recommending medical use for a
197197 single patient;
198198 (2) is accessible to law enforcement agencies and
199199 dispensing organizations for the purpose of verifying whether a
200200 patient is one for whom medical use is recommended under Chapter
201201 169A, Occupations Code; and
202202 (3) allows a physician recommending medical use under
203203 Chapter 169A, Occupations Code, to input safety and efficacy data
204204 derived from the treatment of patients for whom medical use is
205205 recommended.
206206 (c) A patient must be a permanent resident of this state to
207207 be included in the registry. The department may issue an
208208 identification card to a patient listed in the registry.
209209 SUBCHAPTER C. LICENSING OF DISPENSING ORGANIZATIONS AND CANNABIS
210210 TESTING FACILITIES
211211 Sec. 488.101. LICENSE REQUIRED. A person may not operate as
212212 a dispensing organization or a cannabis testing facility without
213213 the appropriate license issued by the department under this
214214 subchapter.
215215 Sec. 488.102. ELIGIBILITY FOR LICENSE TO OPERATE AS
216216 DISPENSING ORGANIZATION. An applicant for a license to operate as a
217217 dispensing organization is eligible for the license if:
218218 (1) as determined by the department, the applicant
219219 possesses:
220220 (A) the technical and technological ability to
221221 cultivate and produce medical cannabis;
222222 (B) the ability to secure:
223223 (i) the resources and personnel necessary
224224 to operate as a dispensing organization; and
225225 (ii) premises reasonably located to allow
226226 patients listed on the medical use registry access to the
227227 organization through existing infrastructure;
228228 (C) the ability to maintain accountability for
229229 the raw materials, the finished product, and any by-products used
230230 or produced in the cultivation or production of medical cannabis to
231231 prevent unlawful access to or unlawful diversion or possession of
232232 those materials, products, or by-products; and
233233 (D) the financial ability to maintain operations
234234 for not less than two years from the date of application;
235235 (2) each director, manager, or employee of the
236236 applicant is registered under Subchapter D; and
237237 (3) the applicant satisfies any additional criteria
238238 determined by the director to be necessary to safely implement this
239239 chapter.
240240 Sec. 488.1021. ELIGIBILITY FOR LICENSE TO OPERATE AS
241241 CANNABIS TESTING FACILITY. An applicant for a license to operate as
242242 a cannabis testing facility is eligible for the license if:
243243 (1) as determined by the department, the applicant
244244 possesses:
245245 (A) the ability to secure the resources and
246246 personnel necessary to operate as a cannabis testing facility; and
247247 (B) the financial ability to maintain operations
248248 for not less than two years from the date of application;
249249 (2) each director, manager, or employee of the
250250 applicant is registered under Subchapter D; and
251251 (3) the applicant satisfies any additional criteria
252252 determined by the director to be necessary for the operation of a
253253 cannabis testing facility.
254254 Sec. 488.103. APPLICATION. (a) A person may apply for an
255255 initial or renewal license under this subchapter by submitting a
256256 form prescribed by the department along with the application fee in
257257 an amount set by the director.
258258 (b) The application must include the name and address of the
259259 applicant, the name and address of each of the applicant's
260260 directors, managers, and employees, and any other information
261261 considered necessary by the department to determine the applicant's
262262 eligibility for the license.
263263 Sec. 488.104. ISSUANCE, RENEWAL, OR DENIAL OF LICENSE.
264264 (a) The department shall issue or renew a license under this
265265 subchapter only if:
266266 (1) the department determines the applicant meets the
267267 eligibility requirements described by Section 488.102 or 488.1021,
268268 as applicable; and
269269 (2) issuance or renewal of the license is necessary to
270270 ensure reasonable statewide access to, and the availability of,
271271 medical cannabis for patients registered in the medical use
272272 registry and for whom medical cannabis is recommended under Chapter
273273 169A, Occupations Code.
274274 (b) If the department denies the issuance or renewal of a
275275 license under Subsection (a), the applicant is entitled to a
276276 hearing. The department shall give written notice of the grounds
277277 for denial to the applicant at least 30 days before the date of the
278278 hearing.
279279 (c) A license issued or renewed under this section expires
280280 on the second anniversary of the date of issuance or renewal, as
281281 applicable.
282282 Sec. 488.105. CRIMINAL HISTORY BACKGROUND CHECK. (a) An
283283 applicant for the issuance or renewal of a license under this
284284 subchapter shall provide the department with the applicant's name
285285 and the name of each of the applicant's directors, managers, and
286286 employees.
287287 (b) Before a license holder under this subchapter hires a
288288 manager or employee for the organization or facility, the license
289289 holder must provide the department with the name of the prospective
290290 manager or employee. The license holder may not transfer the
291291 license to another person before that prospective applicant and the
292292 applicant's directors, managers, and employees pass a criminal
293293 history background check and are registered as required by
294294 Subchapter D.
295295 (c) The department shall conduct a criminal history
296296 background check on each individual whose name is provided to the
297297 department under Subsection (a) or (b). The director by rule shall:
298298 (1) determine the manner by which an individual is
299299 required to submit a complete set of fingerprints to the department
300300 for purposes of a criminal history background check under this
301301 section; and
302302 (2) establish criteria for determining whether an
303303 individual passes the criminal history background check for the
304304 purposes of this section.
305305 (d) After conducting a criminal history background check
306306 under this section, the department shall notify the relevant
307307 applicant or organization or facility and the individual who is the
308308 subject of the criminal history background check as to whether the
309309 individual passed the criminal history background check.
310310 Sec. 488.106. DUTY TO MAINTAIN ELIGIBILITY. Each license
311311 holder under this subchapter must maintain compliance at all times
312312 with the eligibility requirements described by Section 488.102 or
313313 488.1021, as applicable.
314314 Sec. 488.107. DUTIES RELATING TO DISPENSING MEDICAL
315315 CANNABIS. (a) Before dispensing medical cannabis to a person for
316316 whom medical use is recommended under Chapter 169A, Occupations
317317 Code, the dispensing organization must verify that the person is
318318 listed as a patient in the medical use registry.
319319 (b) After dispensing medical cannabis to a patient for whom
320320 medical use is recommended under Chapter 169A, Occupations Code,
321321 the dispensing organization shall record in the medical use
322322 registry the form and quantity of the medical cannabis dispensed
323323 and the date and time of dispensation.
324324 Sec. 488.108. LICENSE SUSPENSION OR REVOCATION. (a) The
325325 department may at any time suspend or revoke a license issued under
326326 this subchapter if the department determines that the license
327327 holder has not maintained the eligibility requirements described by
328328 Section 488.102 or 488.1021, as applicable, or has failed to comply
329329 with a duty imposed under this chapter.
330330 (b) The director shall give written notice to the license
331331 holder of a license suspension or revocation under this section and
332332 the grounds for the suspension or revocation. The notice must be
333333 sent by certified mail, return receipt requested.
334334 (c) After suspending or revoking a license issued under this
335335 subchapter, the director may seize or place under seal all medical
336336 cannabis and drug paraphernalia owned or possessed by the
337337 dispensing organization or cannabis testing facility. If the
338338 director orders the revocation of the license, a disposition may
339339 not be made of the seized or sealed medical cannabis or drug
340340 paraphernalia until the time for administrative appeal of the order
341341 has elapsed or until all appeals have been concluded. When a
342342 revocation order becomes final, all medical cannabis and drug
343343 paraphernalia may be forfeited to the state as provided under
344344 Subchapter E, Chapter 481.
345345 (d) Chapter 2001, Government Code, applies to a proceeding
346346 under this section.
347347 SUBCHAPTER D. REGISTRATION OF CERTAIN INDIVIDUALS
348348 Sec. 488.151. REGISTRATION REQUIRED. (a) An individual who
349349 is a director, manager, or employee of a dispensing organization
350350 must apply for and obtain a registration under this section.
351351 (a-1) An individual who is a director, manager, or employee
352352 of a cannabis testing facility must apply for and obtain a
353353 registration under this section.
354354 (b) An applicant for a registration under this section must:
355355 (1) be at least 18 years of age;
356356 (2) submit a complete set of fingerprints to the
357357 department in the manner required by department rule; and
358358 (3) pass a fingerprint-based criminal history
359359 background check as required by Section 488.105.
360360 (c) A registration expires on the second anniversary of the
361361 date of the registration's issuance, unless suspended or revoked
362362 under rules adopted under this chapter.
363363 SUBCHAPTER E. DUTIES OF COUNTIES AND MUNICIPALITIES
364364 Sec. 488.201. COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT
365365 MEDICAL CANNABIS. A municipality, county, or other political
366366 subdivision may not enact, adopt, or enforce a rule, ordinance,
367367 order, resolution, or other regulation that prohibits the
368368 cultivation, production, dispensing, testing, or possession of
369369 medical cannabis, as authorized by this chapter.
370370 SECTION 4. Subtitle B, Title 3, Occupations Code, is
371371 amended by adding Chapter 169A to read as follows:
372372 CHAPTER 169A. AUTHORITY TO RECOMMEND MEDICAL CANNABIS TO CERTAIN
373373 PATIENTS WITH DEBILITATING MEDICAL CONDITIONS
374374 Sec. 169A.001. DEFINITIONS. In this chapter:
375375 (1) "Debilitating medical condition" means terminal
376376 cancer, multiple sclerosis, autism, or Parkinson's disease.
377377 (2) "Department" means the Department of Public
378378 Safety.
379379 (3) "Medical cannabis" means the plant Cannabis sativa
380380 L., and any part of that plant or any compound, manufacture, salt,
381381 derivative, mixture, preparation, resin, or oil of that plant.
382382 (4) "Medical use" means the ingestion by a means of
383383 administration other than by smoking of a recommended amount of
384384 medical cannabis by a person for whom medical use is recommended
385385 under this chapter.
386386 (5) "Smoking" means burning or igniting a substance
387387 and inhaling the smoke.
388388 Sec. 169A.002. RECOMMENDATION OF MEDICAL USE. (a) A
389389 physician may recommend medical use in accordance with this chapter
390390 for a patient with a debilitating medical condition.
391391 (b) A physician who recommends medical use for a patient
392392 must:
393393 (1) comply with the registration requirements of
394394 Section 169A.003; and
395395 (2) certify to the department that:
396396 (A) the patient is diagnosed with a debilitating
397397 medical condition; and
398398 (B) the physician has determined that the risk of
399399 medical use by the patient is reasonable in light of the potential
400400 benefit for the patient.
401401 Sec. 169A.003. RECOMMENDING PHYSICIAN REGISTRATION.
402402 Before a physician may recommend medical use for a patient under
403403 this chapter, the physician must register as the recommending
404404 physician for that patient in the medical use registry maintained
405405 by the department under Section 488.054, Health and Safety
406406 Code. The physician's registration must indicate:
407407 (1) the physician's name;
408408 (2) the patient's name and date of birth; and
409409 (3) the allowable amount of medical cannabis
410410 recommended for the patient, if the physician recommends an
411411 allowable amount greater than the amount provided by Section
412412 488.002(a)(1), Health and Safety Code.
413413 Sec. 169A.004. PATIENT TREATMENT PLAN. A physician who
414414 recommends medical use for a patient under this chapter must
415415 maintain a patient treatment plan that indicates:
416416 (1) a plan for monitoring the patient's symptoms; and
417417 (2) a plan for monitoring indicators of tolerance or
418418 reaction to medical cannabis.
419419 SECTION 5. Section 551.004, Occupations Code, is amended by
420420 amending Subsection (a) and adding Subsection (a-1) to read as
421421 follows:
422422 (a) This subtitle does not apply to:
423423 (1) a practitioner licensed by the appropriate state
424424 board who supplies a patient of the practitioner with a drug in a
425425 manner authorized by state or federal law and who does not operate a
426426 pharmacy for the retailing of prescription drugs;
427427 (2) a member of the faculty of a college of pharmacy
428428 recognized by the board who is a pharmacist and who performs the
429429 pharmacist's services only for the benefit of the college;
430430 (3) a person who procures prescription drugs for
431431 lawful research, teaching, or testing and not for resale;
432432 (4) a home and community support services agency that
433433 possesses a dangerous drug as authorized by Section 142.0061,
434434 142.0062, or 142.0063, Health and Safety Code; [or]
435435 (5) a low-THC cannabis dispensing organization[, as
436436 defined by Section 487.001, Health and Safety Code,] that
437437 cultivates, processes, and dispenses low-THC cannabis, as
438438 authorized by a license issued under Subchapter C, Chapter 487,
439439 Health and Safety Code, to a patient listed in the
440440 compassionate-use registry established under that chapter;
441441 (6) a medical cannabis dispensing organization that
442442 cultivates, processes, and dispenses medical cannabis, as
443443 authorized by a license issued under Subchapter C, Chapter 488,
444444 Health and Safety Code, to a patient listed in the medical use
445445 registry established under that chapter; or
446446 (7) a cannabis testing facility that analyzes the
447447 safety and potency of medical cannabis, as authorized by a license
448448 issued under Subchapter C, Chapter 488, Health and Safety Code.
449449 (a-1) For purposes of Subsections (a)(5), (6), and (7):
450450 (1) "Cannabis testing facility" has the meaning
451451 assigned by Section 488.001, Health and Safety Code.
452452 (2) "Low-THC cannabis dispensing organization" means
453453 a dispensing organization as defined by Section 487.001, Health and
454454 Safety Code.
455455 (3) "Medical cannabis dispensing organization" means
456456 a dispensing organization as defined by Section 488.001, Health and
457457 Safety Code.
458458 SECTION 6. Not later than January 1, 2018, the public safety
459459 director of the Department of Public Safety shall adopt rules as
460460 required to implement, administer, and enforce Chapter 488, Health
461461 and Safety Code, as added by this Act, including rules to establish
462462 the medical use registry required by that chapter.
463463 SECTION 7. This Act takes effect immediately if it receives
464464 a vote of two-thirds of all the members elected to each house, as
465465 provided by Section 39, Article III, Texas Constitution. If this
466466 Act does not receive the vote necessary for immediate effect, this
467467 Act takes effect on the 91st day after the last day of the
468468 legislative session.